A Brazilian steel manufacturer started selling certain categories of steel in the United States. However, the Brazilian manufacturer is selling the steel at a price significantly lower than it sells the same product back in Brazil. This practice may be a violation of U.S. law.

Question

Quizplus · Accepted Answer

U.S. laws against dumping are specific and require foreign firms to price their products to include 10% overhead costs plus an 8% profit margin, making the price of goods in the U.S. at least the same as the price in the home market.

A Brazilian Steel Manufacturer Started Selling Certain Categories of Steel